The Financial Crimes Enforcement Network (FinCEN) today issued two administrative rulings regarding digital currency. And the government has apparently decided to go with the nuclear option.
The first ruling published today relates to the application of FinCEN regulations to a virtual currency trading platform, while the second ruling discusses the application of FinCEN regulations to a virtual currency payment system.
In ruling FIN-2014-R011, FinCEN states that any and all cryptocurrency exchanges must become licensed as a money transmitter including crypto-only exchanges:
"As explained in the Guidance, a person is an exchanger and a money transmitter if the person accepts convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."
In ruling FIN-2014-R012, the agency confirms that any and all payment processors are obliged to register as money transmitters, significantly increasing the cost of entry in becoming a digital payments provider.
"As described above, the Company is an exchanger under the Guidance because it engages as a business in accepting and converting the customer’s real currency into virtual currency for transmission to the merchant. The fact that the Company uses its cache of Bitcoin to pay the merchant is not relevant to whether it fits within the definition of money transmitter."
Once labeled a money transmitter, a business wishing to continue operating must pay hundreds of thousands of dollars to become licensed in each of the 50 states. And that’s only the beginning of the regulatory costs and legal hoop jumping.
In addition, companies are required to register with FinCEN, conduct a comprehensive risk assessment of its exposure to money laundering, implement an Anti-Money Laundering Program based on such risk assessment, and comply with various record keeping, reporting and transaction monitoring obligations, in addition to meeting several other requirements.
It is interesting to note that the government classifies Bitcoin as a digital “property” for taxation purposes, but as a digital “money” for regulatory and licensing purposes.
Full Story: http://altcoinpress.com/2014/10/fincen-ruling-us-government-ramps-up-war-on-cryptocurrency/
Bolded red: there is already solution www.multigateway.org
Still Beta version.
Um... multi gateway is an exchange service that charges fees, and gateway currencies are held on the platform?? The platform owners or developers could be subject?
What defines ownership of a platform?
What defines a crypto exchange business?
Multi gateway is definitely a crypto exchange platform.
But the law is vague. In decentralized nature, then only nodes in the USA using the platform are at risk? Of course they are pushing for full disclosure starting at the root..
Counterparty is getting the beats.. nxt ae next? I've read the new legislation, but frankly it is very vague.. which means leaves open to new legislation and vague rulings.
Can extradition be possible if in order with anti terror laws? After all, laundering is just the first cause to order, and vague definitions will link to global order terror laws soon enough...
Make no mistake about it. . This thread and this law.. is only a small part of what to come.
The question on anonymity being real was a poke at the order the global unseen government has on us all..
Remember . Sha256. . Well who created it? Interesting laws are now being passed to protect the us governments perhaps.. crown jewel? Bitcoin?
Also remember. Any of us movers and shakers, and in particular every single anon coin dev that isn't already an nsa honeypot.. is on a list. .
And don't think you're personal information can't be linked to mobile gps, registration documents, that your isp, mobile provider, debit cards, visa cards, (prepaid or otherwise) can't be tracked and will not be logged..
The anon marketing scam, well is scrutiny.. and ultimately forced disclosure..
Satoshi designed bitcoin as 100% anon. Just use a different address. Every transaction. Does anyone really think that nsa software can't break through the shitty poorly designed 'anon' currency transactions.. When they the ones that wrote the initial script? People are too lazy to start a new addy every transaction, and sure as hell wouldn't be marketable..
Internet aliases will likely be passed as legal representatives of all the 'anon" coins. I just hope anon practices supercede anon software. . Cuz it'll be like Domino's. .and a blank blockchain = jail time. Why? Financial disclosure... Anon coins.. we'll they unfortunately don't have records.
Extradition? Well depends on how isis pads the anti terror law legislation being passed and the joining of coalition in areas of vague law in the new global order..
Many powerful incidents as of late.. but don't think you can hide behind a vpn. . Anon... was created before you were all born. No matter how many layers in an onion.. can still be stripped to the core.. and thrown on the good old American bbq.
Especially when that onion was grown in the good old us of a..
What is the fight? Bitcoin may be the enemy of freedom.. The hard fork impending.. sidechains impending.. sunshine and lollipops for alts? Sarcastic understood. How can one truly fight?
Human rights are being stripped under our noses.. and every crypto that claims to be a business, or corporation or says hi! I'm the ceo of fuck the government is asking for a lashing not only personally but all the investors..
Anyone mind to stop calling crypto currencies a business? Or should I go back to my job at 711 and give up..
I'd like to point out, that you give way way too much credit to the NSA. Yes they have a vast amount of resources and very trained/skilled people, but Private companies have A Lot more very skilled people. The geniuses of this world dont work for the government, when they can make much more money working privately.
Bitcoin has what we call, psuedo anonymity, and it is not or even remotely close to "100% anon". Yes you're correct in that using new addresses for every transaction would hide your tracks(not that effectively though), but seriously, what average person is going to do that? Remember, you're not marketing crypto to the techies, you're marketing it to the average population. Therefore, anon coins fit the bill perfectly, such as Monero. Cryptonote allows for both regular sending(as with bitcoin), and anonymous sending with different mixing levels.
Thanks for the offer though man
